Special Edition Navigator- SVB Failure
By Allen Davis, CFP®
We are posting a “Special Edition of The Navigator – SVB Failure” by Daken Vanderburg, MassMutual Head of Investments. We depend on Daken for his wisdom and perspective at all times , and especially times like these, when dramatic events such as the recent bank failures can rattle our nerves and shake our confidence.
As always, reach out to us any time for any reason – we’re here to help you in all kinds of weather, even today’s Nor’easter!
MassMutual Market Update
By Daken Vanderburg
“Gradually, then suddenly.”
This brilliant phrase originally came from ”The Sun Also Rises,” by Ernest Hemingway, to describe the two ways of becoming bankrupt. Much to Hemingway’s chagrin, it also has been used to describe the downfall of individual relationships, the personal budget, and more recently, the collapse of Silicon Valley Bank (SVB).
What follows is an attempt to provide clarity on what has occurred and what we believe is likely to occur. For those who would prefer a statement of clarity upfront, let me start by saying I believe a 2008-like crisis is unlikely.
With that, let us begin.